All Forum Posts by: Jesse LeBlanc

@Mir Mubashir Mahmood yes, you’re good.  Have a buyer first, then close. Don’t go listing and marketing the property acting like you’re the owner. But yes, double close all you’d like and you’re good.

@Peter Walther ANYONE can still buy a property, then turn around and sell a property.  What If I bought a property I was going to keep as a rental.  While doing so, one of my friends informed me that they wanted the property more than I did and would pay more?  So I decide to then the next day sell it to my friend.   

You can't control that. :)  It's just a typical sale.  2 different wires, 2 different closings.  These aren't new laws, look at the code.  They've been in place for years, not sure why ppl are freaking out now.  

@Mir Mubashir Mahmood when you have something, shoot it over to us.  Below is all I need for Michelle and I to get started :)

-AB Contract
-BC Contract
-Operating Agreement (if buying in LLC)
-Copy of Driver’s License
-EIN for LLC (if buying in LLC) or SSN if you’re buying in your personal name (for tax purposes)
-Any Amendments on the contracts
-Closing company’s contact information (Name of closing company, your contacts Name, Phone & Email)

And that’s it!

@Mir Mubashir Mahmood I CLEARLY prefer the sooner the better, basically the same time you're sending over contracts to the closing attorney so we aren't upsetting the closing company last second.  However, I have funded many deals same day, but it usually comes with a rush, stress, and possibly not funding in time same day but always happened the following day.  So again, the sooner the better but Transactional Funding isn't the same as hard money loans where there are credit checks, appraisals etc etc that require more time.

 All one needs to do is double close.  They cannot and will not ever be able to stop that.  NO PROBLEM.  But also, by having your buyer first, you're not marketing anything.  You can also allow the buyer/seller to be direct then be line item on one of the sides.  Too many ways to continue business as usual for those doing it the right way.

@Mir Mubashir Mahmood Investors are different, they know you're wholesaling.  Again, you don't need to be licensed, so that won't matter. You can tell them that you work differently than most wholesalers.  You want to find out their exact criteria, or the best criteria they can give you.  Maybe give you an example of the last 3 deals they've bought.  Then you'll start targeting those areas for what they are looking for, bringing them deals specifically catered to them.  Then you'll allow them first dibs on it if they will give you their REALISTIC (not low ball price), so you can then go back to the seller and do your negotiations with them.

You'll want to vet the investor out, make sure they are legit, and build a good relationship with them. 

Once you know a market more, then later you'll be able to get deals locked up without knowing your buyers price first because you already have a good idea of what your buyers would pay.  

As for my transactional lending, google Wholesalers Transactional Funding  That is also the website, but I believe I put it in here it will block it.  But you can see my logo in my signature as well.   www wholesalers transactional funding . com   then click on "I don't have a deal right now" and we'll send you back some info so you have it for the future. :)

You don't need to be licensed @Mir Mubashir Mahmood.  Most sellers in need of selling will never ask this or care or even think of it.  I would NOT introduce myself as a wholesaler. I would introduce myself as the investor or partner who is interested in buying their house and solving their problem.  then get to know them, ask all about everything but the property, build rapport and then get to the house.  The house isn't always the problem, you need to ask questions, listen, ask more questions to figure out the reason they are wanting to sell then start talking about the house and price later. 

Technically when you sign the contract, YOU are the buyer/investor at that moment. So by telling them initially you are the buyer, you will be as you'll be the one signing the contract with your name or LLC on it. When you assign your contract to your partner, friend or other investor you know, then they now become the new buyer. So you're never lying, you won't seem shady to anyone, you won't get caught up on your words trying to hide something and they catch you like other wholesalers who operate otherwise.

You need to stop whatever book you're reading and go straight to the book I just said. It has all of that which you just mentioned but with a focus on wholesaling.  You'll regret not reading it sooner, I get nothing out of it and I'm not BS'ing you on stopping the other book and get this one.

Look into The Kingdom Real Estate or my friends book "If you can't Wholesale after this, I've got nothing for you" by Todd Fleming.  That will set you up in the right direction for operating a wholesale business the right way while you learn the market etc.

If you have your buyer first, then you don't have to do any marketing.  Your buyer can even tell you the price they would pay, then all you have to do is get the seller below that price.  That becomes your spread.  You don't have to know the market, you don't have to know rehab costs, you don't have to know anything except how to talk to people and solve their problem by asking questions about why they want to sell, what's their motivation.  Unfortunately, the majority of wholesalers out there are just getting anything locked up for any price, then market the "deal" on social media or via a buyers list, overpriced and no one will pay the crazy price, then the wholesaler pisses off the seller because the wholesaler had to back out.  That would then be marketing the property. 

Some will say they're marketing the contract for sale, not the property...

But you can have a backup investor buyer, and likely a great idea.  But if you are very transparent with your seller on the fact that you and a business partner or another investor you know will be the one ultimately buying the property, your job is to build the relationship, figure out why they want to sell the property and at what price, then you'll work with your partner or investor friend to see if that number works.  If so, you'll come back and get it under contract. 

binding means "signature on a contract" so the contract is valid or "binding" agreement between you and the seller.

Hey there @Mir Mubashir Mahmood If you already have a buyer lined up BEFORE you go binding with the seller, then assign the deal you're good.  Or you can have your buyer first, then go binding with the seller then double close if you wanted to.  You can also use Transactional Funding, which I lend for a lot of wholesalers.  It's called Wholesalers Transactional Funding.

You will only have extra closing costs if you double close, the assignment is assigning your contract to your end buyer and they just pay for their closing costs then you get your spread at closing.

Property Taxes are prorated at the time of closing.  It's a wash for a double close, so nothing to worry about.  But it will be a credit to you on the AB side, then a debit from you on the BC side, therefore a wash.  For any of my double closings in other states, I still get title insurance, but I know some wholesalers who do not request title insurance, I just wasn't willing to take that risk if anything ever came back down the road.  So with those wholesalers, the extra costs on a double close would be the closing companies closing costs, title search fee (separate from title insurance), recording fees and some minor small fees.